Investing in Silver – Good or bad?

Not many people in India will have the appetite for buying silver as an investment, even though it is the one of the costliest metals after gold. May be, that is the reason why there has been no silver ETFs in India so far and it is a big disadvantage as they are the best ways to invest in precious metals. Even though there is a substantial increase in the silver imports from the last five years, people are still not considering this precious metal in their portfolios because it is preferred more as a jewelry rather than investment. The bottom line is that the silver price always should be seen as a long-term buying opportunity but not for the instant profits just like in case of gold.

Investing in Silver:The current silver price volatility and surging stock markets are making hard for investors to understand whether investing in silver is a good option or not. In general, many investors predict that the prices of precious metals always tend to move in directions opposite to the market. It may not happen all the time as the price also depends on the concepts like demand and scarcity. However, people should think twice before investing in silver or limit their purchasing quantities because too much volatility is not good for investment.

Just like gold, silver is also considered as an indispensable asset which can be preserved to pass it on to the next generations. The liquidity of silver is more when compared to gold because it is more affordable for the larger middle-income sections of the society. It is relatively easy to get fair market value in return for good quality of silver bullion than for gold bars and coins. So, because of its simple maintenance and higher marketability people think investing in silver is much easier than gold, especially for higher denominations.

What are the best ways to buy silver?
Investing in silver can be made either by buying physical metal in the form of ornaments, coins, bars and rounds (privately minted coins) or through certificates and ETFs. Silver bullion is perhaps the most safest and hassle free way to hold an investment because it is much cheaper than gold and there is no need to worry on huge losses. Coins can range anywhere from one to several ounces and is ideal for small investors whereas bullion bars are meant only for big hitters in huge sizes. If we look at financial products, as there are no silver ETFs in India, people who are interested in investing as financial securities have to buy overseas ETFs and shares. The only additional thing that they need to consider while making the investment in US ETFs is they not only have to care for the funds, but also have to pay attention for USD-INR rates because the exchange rate will affect the returns.